Official Chit-Chat Thread

[OakleyFrankFMJ]

Mine too. I'm a freelance pageant judge!

I got a clipboard and everything!

I like to make these really cool shoes.

 

[cyclerdoug]

I like to make these really cool shoes.

Ferragamo replicas?!

Saw them!

 

[OakleyFrankFMJ]

Ferragamo replicas?!

Saw them!

They have a little more ....."weight" to them.

 

[cyclerdoug]

They have a little more ....."weight" to them.

Oh, right. Those other Italian imports via Long Island.

"Sinka Concreteores"

 

[Rustpot]

In my opinion once you've specifically engaged in acts motivated purely by profit you're in business.

What's interesting is that there was recently clarifications on this subject as it pertains to firearms in the US. Basically there is no concrete law or threshold that transitions someone from a "collector" to a "dealer" but there is a lot of gray-area verbiage that basically states if you buy with the sole intent of resale for profit, or if you are conducting more transactions than simply adding or subtracting from your personal collection you're a dealer and can be charged if you don't have a license. Which is rubbish, since guns are sometimes seen as investments, or deals come along that are too good to pass up even if you're not really interested in keeping the item.

For example; a new gun store just opened down the street. They have a pistol that is at least $300 under valued, and I know I could quickly sell it and make that $3-400. Attractive as that may seem after having lost my source of income, buying it with the intent to immediately flip it for profit is 100% a business move and under the (somewhat confusingly worded) letter of the law I would need a Federal Firearms License to conduct my dealings in that manner.

I view Oakleys the same way. If you're buying just to flip you're in this for the money. That's not to say you can't make money buying low and selling high, it just means there's a clear difference in intent and motivation between the transactions of a hobbyist and those of a businessperson.

 

[cyclerdoug]

Good analogy @Rustpot. I'll go with what I know, the car business. This is state-specific but here in PA if you buy and re-sell more than 12 cars in a calendar year you need a dealer license.
Profit or loss.

 

[kronin323]

Thanks for the link and other feedback. Let's paint a more specific scenario.

Despite my warnings, someone I know has gotten into multilevel marketing a.k.a. a pyramid scheme. I'm gonna assume y'all already know what that sort of thing is.

This person has taken the strategy of actually selling product instead of trying to bring in more people (the latter being the way you really make money on these things) and keeps calling it a business. Which it could be. But there's no business plan, no forecast, no budget, no P&L, no balance sheet. Though the initial investment remains outstanding, this person has been selling enough to cover continuing expenses restocking inventory, etc. Basically the goal each month is to sell enough to cover the CC bill incurred funding the activity, but there is a desire to make it profitable in the future, perhaps even allowing a paycut / reduced hours at the "day job".

So, to me, this has not yet crossed the line from hobby to business. But I could be wrong, was looking for some broader discussion.

 

[Rustpot]

Thanks for the link and other feedback. Let's paint a more specific scenario.

Despite my warnings, someone I know has gotten into multilevel marketing a.k.a. a pyramid scheme. I'm gonna assume y'all already know what that sort of thing is.

This person has taken the strategy of actually selling product instead of trying to bring in more people (the latter being the way you really make money on these things) and keeps calling it a business. Which it could be. But there's no business plan, no forecast, no budget, no P&L, no balance sheet. Though the initial investment remains outstanding, this person has been selling enough to cover continuing expenses restocking inventory, etc. Basically the goal each month is to sell enough to cover the CC bill incurred funding the activity, but there is a desire to make it profitable in the future, perhaps even allowing a paycut / reduced hours at the "day job".

So, to me, this has not yet crossed the line from hobby to business. But I could be wrong, was looking for some broader discussion.

If he would be doing it with no money involved or to fill spare time it's a hobby. If he's looking to make money it's a business. Maybe a sub-class "side-gig", but as soon as you're talking taking on "inventory" that's no longer a hobby.

Now, having a passion for the subject matter of your business means it can be both at various states in time, but it clearly sounds like a money making venture, which is business.

There's a lot of them out there. Cosmetics, sex toys, kitchenware; a lot of people see the prospect of easy money selling things from home but don't realize the profit margins are low and the sales hit rate is even lower. These are not hobbies. Unless your hobby is getting too deep in a pyramid scheme and not realizing you need to move up a level by getting more people below you.

 

[Dieseltech]

I think it's time someone just finally did it already.



Just create the thread. "Post pictures of your undies and Oakleys"

Lol that is Awesome! I wanted to post that when I saw the thread about the shoes but than thought no I had better not lol.

 

[Dieseltech]

Will someone please answer that guy lol.